Last week we talked about the importance of specific skill development as a whole, and how on our desk we use market replay to get more reps and practice. This week we’re going to follow up on that by talking about some of the actual drills you can begin doing.

For those unaware, there are many trading platforms that allow you to go back to a specific date and time, and replay the market in real-time while even executing trades as it replays. This is one of the best ways to get more reps in, and work on your skills! One of my favorite ways to do it is rewind back 90 days or so to a day I have no idea what will happen, and just fire it up with a clear skill in mind I want to practice.

Here’s just a sampling of how you can use market replay to work on your skills:

ENTRIES

1. Orderflow: (reading other participants orders, using orderflow tools, etc)
2. Timing/Rhythm: (getting in overall sync with the ebbs and flows on your intraday timeframe)
3. FOMO: (dealing with fears such as “missing out” on a potential move/ chasing)
4. Underperformance: from prior sequence (run through a sequence from earlier in the day that was tricky to learn)
5. Using an entry checklist: (practice using a checklist to ensure quality setups and variables considered)

RISK & STOPS

1. Sizing properly: (self explanatory, but if you struggle with this- practice it)
2. Using attached OCO bracket orders: (set this properly for you, get used to using them effortlessly)
3. Stop placement: (ideal stop placement, not in hindsight, but according to your strategy/process)
4. Scratching trades (or not scratching trades): (whether doing it, or working on not doing it, process should drive it)
5. Assessing re-entry potential: (do you have a process for identifying, watch for these, execute them)

PROFITABLE MANAGEMENT

1. Managing take profit levels: (what are the key levels for this, or your process. practice executing accordingly)
2. Managing a trailing stop (or leaving one alone): (whether algorithmic or manual, practice execution)
3. Acting on “reasons to exit”: (identifying these in real time, rather than acting upon any fear or impulse)
4. Managing a core position: (unique way in which this component is managed)
5. Adding: (under what conditions, how much, additional risk management for add, etc. process-driven)

These are just some of the specific skills and parts of a quality trading process that could be practiced using market replay. You or your trading coach should know EXACTLY what you should be drilling to improve and take your trading to the next level.

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Trade well,
Merritt

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